Economics Multiple Choice Question – 10 August 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Economics

Which of the following combination of changes is likely to increase the international competitiveness 
of a country’s products?

Select ONE answer:

Table 67

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 4

  1. A decrease in labour productivity and an appreciation of the currency would both be likely to increase the relative price of domestically produced products.
  2. A decrease in labour productivity would be likely to reduce it by raising wage costs. Although a depreciation of the currency would increase international competitiveness by reducing export prices and increasing import prices.
  3. An increase in labour productivity would increase international competitiveness but an appreciation of the currency would reduce it.
  4. Correct: An increase in labour productivity and a depreciation of the currency would reduce the relative price of domestically produced products. This would be likely to make domestically produced products more internationally competitive.

 

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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